CLSA Asia-Pacific Markets' Chinese venture has been granted a securities broking license and a securities investment consultancy license to become the first Sino-foreign venture to undertake a brokerage business on the mainland.
China Euro Securities Ltd, CLSA's 33.3 percent owned Sino-foreign joint venture, won the approval from China Securities Regulatory Commission, CLSA said in a statement late on Monday.
"Late today, CESL received the first new licenses to be granted pursuant to the December 2007 announcement," the CLSA statement said.
"The Securities Broking License permits A-share broking from an office in Shanghai, making CESL the first Sino-foreign joint venture to receive a license permitting A-share brokerage since the announcement.
"The Securities Investment Consultancy License permits the writing and distributing of Chinese-language research and the issue of investment advice to investors in the Chinese mainland," said the statement.
Full service
The two licenses will enable CESL to start a full-service institutional research, sales and broking business for domestic and international clients who plan to buy and sell A shares trading on the Shanghai and Shenzhen stock exchanges.
Last December, China Securities Regulatory Commission said Sino-foreign joint-venture securities companies operating for more than five years can apply to expand their business from underwriting and brokerage services for foreign currency shares.
Jonathan Slone, CLSA's chief executive officer, said the licenses would permit CLSA to further expand its research franchise and deliver it to international and domestic clients through CESL.
"CESL will work closely with CLSA and our partner, Fortune Securities Co Ltd, over the coming months to roll out the new business and we look forward to working with our clients and the regulators to ensure the success of this new business," said Slone.
Last week, Credit Suisse won regulatory approval to participate in the domestic stock-underwriting market with the establishment of a joint venture with Founder Securities Co. Credit Suisse owns a 33.3-percent stake in the new venture.